Summary and key points:
In the health-conscious boom during and post COVID, many digital-first brands emerged. Everyone was actively looking for ways to boost immunity and be healthy. On this fast track towards “wellness” stood various nutraceuticals, all based on natural or herbal ingredients, many promising the “goodness of Ayurveda”. Each one has a slew of products, much like the spices category, that fall into three groupings:

1. Single-ingredient – Omega-3, Vitamin B12 / D tablets.

2. General Mixes – Multivitamin, Immunity Booster.

3. Specialized, and perhaps proprietary, formulations, usually around specific therapy areas – women’s health, managing diabetes, and anti-ageing.

My fellow marketers and I were very curious about exactly how consumers make their brand choices — what drives preference for one brand versus another, what creates credibility for one brand versus another, and what sources of information they accessed to read up about products. What were their reactions to all the content pieces, the blogs that digital marketers are constantly urging us to write?

Our collaborator, a young and hungry agency called Research Services Bureau went out on their own initiative to speak with a strong base size of ecommerce consumers in Mumbai, Delhi and Bangalore who had purchase whatever they considered “health supplements” within the past 6 months. In addition, they set up in depth interviews with recent buyers of these digital first brands so I could interview them.

What we found about the D2C brands we looked at was what has been stated in multiple thought pieces on digital marketing

1. We are still in a village, albeit a virtual one: Consumers go by Word of mouth from peers and influencers. And whom do I trust? Well, anyone really, if that person seems presentable and vaguely believable.

The questions that puzzled us about brand equity were,

1. Which brands had more awareness than others? None. Each brand’s performance marketing basis their budgets had netted some trial. Nothing came anywhere close to the old established brands in the category, which of course was to be expected. Perhaps this is why products that ran out of funds to push price discounts have been unable to sustain.

2. What had preference? None. No brand had any specific associations of identity, any hero product(except melts) or indeed benefit area. Which on reviewing whatever communication we could access, was not really surprising. If all of it looks the same and promises similar discounts, what can the consumer play back? No brand owned a consumer segment, a consumption occasion, even any ingredient or feature. Laddered emotional benefits would be farther away

3. What got credibility? Nothing much. People did not really register any information about clinical trials or tests that were quoted.

So, consumers tried a generally healthy sounding product which claimed to have only natural ingredients so at least it would do no harm. If someone known has tried it, it must be OK.

What I have been unable to understand was the outlook for repeat buys which is what determines lasting value. Consumers seemed undecided about whether the product did any good which is an ongoing challenge for general health or skin care products. How do you really track the impact over a large period of time that is required to bring about any significant change. If the taste experience was positive, they would stay on with the product, else would respond to the next piece of performance marketing that came along.

For many consumers who were not the very determined health seekers, after the initial enthusiasm waned, they dropped off the wagon and averted their eyes from the product on the shelf. After a while, in a clean up, they would cluck over the best buy date and discard the product. I have been unable to come across any buyers of niche and expensive products like collagen or seaweed based products which perhaps have created their islands of devout followers.

So, the big question is what happens next? Which of these brands will go on to become a super brand? I assume that would depend on

1. Who has managed to get bought by a large industry player or a flush investor?

2. Who has enough funding to be left standing when all others have died?

3. Who has managed to garner a larger portion of the more commonly purchased products – aloe vera and jamun juice? Apple cider vinegar?

Industry majors who have acquired some of these brands of course are very familiar with the marketing playbook. It would be an interesting watch to see what alternate brand positioning platforms they create for future health wars.

​Have a marketing query or want to talk more about this project? Drop me a message.